Smartphone Shipments in India Witness a Mixed Quarter Amid Challenges
A Slight Dip in Overall Shipments
In the second quarter of 2024, India’s smartphone market experienced a 2% year-on-year decline in shipments, according to a recent report from Counterpoint Research. This marginal dip was largely influenced by several factors, including a persistent heatwave, an off-seasonal downturn, and a sluggish demand carryover from the first quarter.
Rising Popularity of 5G Smartphones
Despite the overall decline, the quarter showcased a massive surge in 5G smartphone shipments, which hit a record 77% share of the market. This significant increase was driven by falling average selling prices (ASPs), making advanced technology more accessible to a broader audience. Manufacturers responded to this change by organizing sale events between April and June, aiming to clear out existing stock, which reduced new shipments and slightly contributed to the de-growth.
Impact of External Factors
Senior Research Analyst Shilpi Jain commented, “Heatwave conditions in various regions led to lower footfalls in offline channels and delayed smartphone purchases as consumers prioritized appliances like air conditioners and refrigerators. This reduced demand caused an inventory build-up.” However, online sales, a favorable harvest season, and aggressive promotional deals towards the quarter’s end helped companies recover some ground.
Market Leaders and Dynamics
According to yet another report from Canalys, India’s smartphone shipments registered a slight year-on-year increase of 1%, totaling 36.4 million units for Q2 2024. During this period, Xiaomi reclaimed the top spot with an 18.9% volume share, up from 10% in the previous quarter. This marked a notable recovery for Xiaomi, which hadn’t held the top position since Q1 2023. The company’s shipments surged by 23% year-on-year, driven by a well-defined product portfolio that stretches from budget to affordable premium segments. Streamlined marketing and expanded distribution channels also played a role in Xiaomi’s ascendancy.
Who’s Who in the Market
- Xiaomi: 18.9% volume share and significant year-on-year growth.
- Vivo: Close second with an 18.8% share.
- Samsung: Third place with an 18.1% share.
- Realme: Fourth with a 12.5% share.
- Oppo: Fifth with an 11.4% share.
Shubham Singh, another Research Analyst, pointed out that despite the slight decline in total shipments, the market achieved its highest-ever value in Q2 2024, supported by increased consumer preference for higher-value smartphones. This led to a 24% year-on-year growth in the ultra-premium segment (priced over INR 45,000).
Samsung’s Premium Focus
Samsung led the market with a 25% value share. The South Korean giant’s new Fold 6 series contributed significantly to maintaining this leadership. Samsung’s ultra-premium segment saw a staggering 99% year-on-year growth. The company’s focus has been on value over volume, which is visible in these remarkable figures.
Looking Ahead
Vivo and Apple followed Samsung in terms of value share. Apple’s market performance is expected to improve further in the coming months, spurred by recent price cuts across its range of iPhones. Furthermore, Nothing emerged as the fastest-growing brand in the first half of 2024, with a 567% year-on-year increase in shipments. Carl Pei, co-founder and CEO of Nothing, remarked, “This growth demonstrates that we are effectively executing our strategy. The most exciting part is that this achievement is fueling Nothing’s innovation, which will be a core focus for 2025.”
Other Rising Stars
Motorola also displayed promising growth with an 88% year-on-year increase, while Poco dominated the Rs 10,000 to Rs 15,000 segment, showcasing a 318% rise in shipments. In terms of chipsets, MediaTek secured the largest share of India’s smartphone market with a 54% share. Meanwhile, Qualcomm led the premium segment with a 33% share.
The price bands of Rs 20,000 to Rs 30,000 and those over Rs 45,000 saw the most rapid growth at 25% and 24% year-on-year, respectively, indicating a strong shift towards higher-value smartphones.
Conclusion
India’s smartphone market, despite facing challenges, continues to evolve and adapt, showing impressive preference trends towards premium and 5G-enabled devices. With market leaders like Xiaomi reclaiming the top spot and new players like Nothing making remarkable leaps, the coming quarters promise a dynamic and competitive landscape. The future will likely bring more advanced, accessible technology to meet the diverse needs of Indian consumers.
Read more insights at Counterpoint Research.
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Mehek 
Divya